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Employers Holdings Q3 net premiums earned falls

By Reuters News


Overview

  • Specialty workers' comp insurer's Q3 revenue and net premiums earned fell yr/yr

  • Net income improved to $11.6 mln from a loss a year ago

  • Company returned $24.4 mln to shareholders via buybacks and dividends


Outlook

  • Company plans to launch large deductible workers’ compensation product next year

  • Company expects higher interest rates to benefit investment income going forward

  • Company expects new product offerings to drive additional profitable growth


Result Drivers

  • RESERVE STRENGTHENING ABSENCE - Co said net income improved mainly due to not recording reserve strengthening or prior-year loss development in Q3

  • PRICING AND UNDERWRITING ACTIONS - Co attributed premium declines to deliberate pricing and underwriting actions prioritizing profitability

  • INVESTMENT INCOME - Co said higher net investment income was driven by increased yields and private equity returns


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$189.30 mln

Q3 EPS

$0.64

Q3 Net Income

$11.60 mln

Q3 Pretax Profit

$14.50 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "hold"

  • Wall Street's median 12-month price target for Employers Holdings, Inc. is $49.00, about 5.7% below its October 27 closing price of $51.94

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 27 - Arch Capital Q3 net income falls, catastrophe losses rise

  • Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised

  • Oct 26 - Cincinnati Financial Q3 adj EPS beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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